BBA 4951 Unit IV Journal

BBA 4951 Unit IV Journal

There are many important determining factors to consider in terms of considering market development versus product development. Market development considers introducing current products or services offered by an organization into new geographic areas whereas product development is a tool that is used with the intention of increasing sales by improving upon or modifying existing products and/or services. In considering market development, the six important guidelines or factors that can be utilized to indicate whether or not the strategy will be effective are:

In comparison to market development, the five important factors to be considered within product development are:

1. New available distribution channels are reliable, inexpensive, and of quality
2. Organizations ability to be successful at what it does
3. New market(s) actually exist in expanding areas
4. Availability of required capital/human resources for expanded operations
5. Excess in production capacity within the organization
6. Organizations basic industry becoming global in scope

With this information in mind, I would first recommend to the CEO to consider the current state of the products or services that the organization is offering. Are the products at the end or maturity stage of their life cycle? Or are they still booming and expanding within the market? I would then ask the CEO to consider the state of the industry and think about the organizations status as either a leader within the industry, setting the trend for others to follow, or, is the organization one that requires improved or entirely new products or services to stand out? In considering market expansion, I would recommend that the organization research the markets and areas intended to be expanded into. Does the desire for the organizations products or services exists? Also, to consider the state of competitors and determine whether or not the organization will be able to offer the same or better product at competitive prices and will the organization be able to actually tap into the new market and pull customers from competitors. Additionally, I would recommend a review of the costs of the market development and whether or not $1 million will cover it without incurring additional costs or cutting corners. Finally, I would recommend a determination of whether or not the market is expanding towards a global scale type market. Is there room for growth in the future?

1. The organization has a line of successful products, however these products are in the maturity stage of their life cycle
2. The organization and its products compete within a market of rapid technological development
3. Competitors of similar quality offer similar or better products at lower prices
4. Competing within a high growth industry
5. The organization has exceptional R&D capabilities